The Devil's Excrement





  The Devil's Excrement
Observations focused on the problems of an underdeveloped country, Venezuela, with some serendipity about the world (orchids, techs, science, investments, politics) at large. A famous Venezuelan, Juan Pablo Perez Alfonzo, referred to oil as the devil's excrement. For countries, easy wealth appears indeed to be the sure path to failure. Venezuela might be a clear example of that.
Last updated:
12/1/2007; 10:14:10 AM

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Wednesday, November 14, 2007




From IBD, thanks. M!

The world got a good glimpse today of the Chavez Venezuelans have come to know and not precisely love, when despite calls by the Spanish Foreign Minister to normalize relations between the two countries and put an end the verbal spat that began at the Summit in Chile, Chavez turned around, asked for an apology from the King and made vindictive threats against Spanish companies in Venezuela.

The style was nothing new to Venezuelans who have been treated this way for the last nine years, as Chavez decides people are guilty by association or his enemies because they do not take a stand that agrees fully with his positions. He then looks for revenge in the form of either Government intervention, discrimination, illegal treatment of those he has declared enemies and/or direct revenge upon the persons or entities involved. It is in fact, the history and style of the last nine years, from the discriminatory Tascon/Chavez list, to the vindictive attitude towards opposition leaders, former friends like General Uson or the most recent example of calling his savior and former buddy General Baduel, a right winger and a traitor.

Chavez first arrived in Venezuela from Chile rsaying that he had not heard the King of Spain telling him to shut up, making us wonder if he heard any of what Zapatero told him about respect, the right to dissent and democratic attitudes. At the time, Chavez added that the whole incident made him wonder if the King of Spain actually knew about the “coup” in 2002, when Chavez left office until Baduel rescued him.

Yesterday, Chavez showed he was actually quite irked, boasting, in nouveau rich style, that Spain’s investment in Venezuela were not indispensable, a sad statement given the state of poverty in which so many Venezuelans live, which would be aided by any investment as the Venezuelan state is incapable of going at it alone, as has been shown over and over in the country’s history. Last night Chávez went even further naming two Spanish banks by name (Which coincidentally made multi-million illegal contributions to Chavez’ 1998 Presidential campaign) as not needed by the country. He even included a call to investigate the death of Simon Bolivar, a theory proposed by fascist and anti-Semitic Argentinean “revolutionary theorist” Norberto Ceresole, a deceased advisor to Chavez who claimed the Mason’s had killed Venezuela’s Liberator.

Then today Chavez went all out, demanding an apology from the King of Spain and threatening to get vindictive and as retribution, take back properties nationalized by earlier Governments and “put an eye” on Spanish companies operating in Venezuela.
Said Chavez: “…Spanish companies will have to “We don’t want to damage them, but at this moment I am subjecting the political, social and economic relations with Spain under a profound revision…This means that Spanish companies will have to begin to account for themselves…I am going to put an eye on them to see what it is they are doing here… "Whatever has been privatized can be taken back, we can take it back," Chavez told Reuters. "If the government of Spain or the state of Spain ... start to generate a conflict, things are not going to go well” Chavez also called Spanish Primer Minister Zapatero “a fool”.

While Venezuelans have been directly exposed over and over to this type of behavior, Chavez has only used it against mostly US companies and politicians in the past or Latin American Presidents who are not aligned with his thinking. President Fox and Garcia of Mexico and Peru suffered from his attacks, while you know who was called the devil at the UN, while US companies were nationalized without so far receiving any compensation for the joint ventures in the Orinoco Oil belt.There is simply no rule of law, just Chavez´ wishes, that is why he threatens some sort of special watch over Spanish companies as if they have been exempt from regular supervision because of their origin and thus, implying Venezuelan companies have indeed been watched over carefully. This is nothing new, as steel company Sidor, owned by Argentina´s Ternium was spared nationalization because of Chavez´close friendship with that country´s President.

But what sets this apart is that the Socialist Government of Zapatero in Spain and the Bachelet Government in Chile had been quite friendly and supportive of Chavez and his political project since they were inaugurated in office. But this changes the direction 180 degrees. In Chile, because Chileans felt insulted by Chavez’ style upon arrival and his later charges that Chile has made no social or economic progress and Spaniards because they feel insulted by Chávez’ charges against Aznar in Chile and now against Zapatero and the King.

Chavez’ threat today even led some to believe that his reaction now may be part of a preconceived plan. At least twice this year Chávez has threatened to nationalize the banking system if they did not help in the development of his economic and political project. It was always thought that the biggest stumbling block to this would be his good relations with Spain and the strong presence of that country in Venezuela’s financial system with three very important institutions present: Banco Santander, Banco Bilbao y Vizcaya and Banco Exterior. With the recent spat, Chavez could simply say he nationalized the whole system and there were reasons of state for doing so and it was not directed explicitly at the Spaniards.


In fact, Chavez’ rush to approve the proposed Constitutional Reform is related to all this. Last January, the National Assembly approved an Enabling Bill, which allowed Chávez to legislate by decree for 18 months, which expires next year in June. A prerequisite for this was to remove and add to the Constitution those limitations to the autocrat’s political and economic project. Thus, the reform had to precede the Executive branch decreeing the new laws. It may be no coincidence that today Chavez happened to mention that he would issue one hundred laws by decree after the new Constitution is approved.

In fact, I hope I have time in the near future to write about the fact that Chávez is being given carte blanche to legislate by decree on economic matters, under the proposed reform of the Constitution.

Thus, the whole spat with Spain and its King has a lot to do with Constitutional Reform. Chavez is not even worrying about Dec. 2nd. he is sure he will win and he is thinking ahead to what he will do when he has the new Constitution approved and it appears that removing the Spanish banks from the picture may be an important part of his plans for the economic and social future of Venezuela.

God help us!

8:30:42 PM    comment []



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